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Analyst forecasts PS3 price cut

Pachter says first Euro shipment will sell fast

Wedbush Morgan Securities analyst Michael Pachter has predicted that the PlayStation 3 will sell out in Europe by May, with a price cut of more than EUR 150 expected inside 12 months.

"I'm actually surprised that consoles are not priced more like other consumer electronics, with early movers charged a bunch and the mass market charged less," Pachter told GamesIndustry.biz - using the example of DVD players, which are now available for much lower prices than when they first launched.

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hardwood20013887d ago (Edited 3887d ago )

Wedbush Morgan's Security analyst, Michael Pachter, has always been blinded by sony's PAST SUCCESS and HYPE...

UrbanJabroni3887d ago

He argues that the price should come down...like DVD players!? Apparently this guy is eight years old and has never seen a console launch before. Lack of competition (for the same device) means manufacturers are much slower to drop the price.

Not to mention Sony would like to minimize losses for as long as possible.

Worst...analyst...ever...

Maddens Raiders3887d ago (Edited 3887d ago )

Pachter:
-- "My guess is that the Wii will be up to near 1.6 - 2 million by March 23, but that is far from an insurmountable head start." --

Pachter described the PS3's graphics as

--"phenomenal", adding that the cost of hooking the machine up to a 1080p monitor is "worth every penny".

-- "I think that games like Gears of War on the 360 look every bit as good, but given that PS3 game development..." --

I've been saying for some time now that people are going to slowly begin to change their minds on the PS3, stop all the hatespeak and concentrate on the beauty of the concept and internal hardware. All those people that bashed it are going to adore it. Why? Because it was built for potential, people hate paying for things that aren't in their hands (yet) and that's why everybody b1tche$ when things aren't coming together quickly enough. They want it NOW. And guess what? It's rolling along just fine. From the early reviews of the AAA Blu-ray player to the list (don't need to beat horse) of great games coming out this year for the PS3. People are realizing that Blu-ray is the media of the future and of business and this is why the PS3 will be a success by default. I've been saying that 2007 will be the year of the PS3 and a return to games, but on the new SNE iteration this time. Again, 2007.

Wasn't The BD a totally logical move? We're talking about a product that sells the cheapest & NEWEST (CELL) technology, is heavily industry supported by the large moviehouses, and operates brilliantly! How great is that? Man, throw in a sizeable price drop and SNE will have broken even by the summer of 2008. Watch.

Good read Cap'n.

hardwood20013887d ago (Edited 3887d ago )

We'll see, I highly doubt everything you just said will come to pass. I would however like to revisit this article on July of next year(2008) after e3 is over, heck I would like to revisit this article after this year e3.

By the way it was a good read "Captain Tuttle" not great one, but a good one none the less.

MicroGamer3887d ago (Edited 3887d ago )

A big chunk of the price Sony is getting in Europe goes to taxes. Sony isn't going to be able to cut prices without putting themselves deeper in the red, unless the European governments are willing to forego their pound of flesh, which isn't likely to happen.

800,000 Wii's sold in Europe last quarter, only because there were shortages and they had to replace those wrist straps which slowed delivery. Wii is out there now and still being snapped up as soon as it hits shelves. Once Nintendo starts making regular deliveries to Europe again, they will continue to sell out there, too. Nintendo has 4 million shipped already and PS3 sits on shelves gathering dust in both Japan and N. America. The gap is going to continue to widen in Nintendo's favor. Nobody is going to buy PS3 in Europe (or anywhere else) at the prices they are charging except for the fanboys with the deepest pockets.

Michael Pachter needs to find a new line of work. Every time he opens his mouth, he embarrasses both himself and the company he works for.

TheMART3887d ago

Sony isn't able to cut the price

They just lost 300 million dollars by shipping one million PS3's in 2006!

They're in red marks constantly and having trouble earning money. They won't cut prices untill the PS3 comes down in costprice a lot. Which means over 200 dollars... That will take a long, long time

DJ3885d ago

Sony just made 1.3 Billion in profit for 2006, compared to 1.4 Billion in 2005. They're doing just fine. The cost of PS3's components are steadily decreasing, and the high software attach rate is definitely helping.

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